Friday, October 23, 2020

Be patient! GOLD Rises Again, As Investor Expectations Rise

 Thursday's trading session saw a resurgence in gold prices following the strengthening of the US dollar towards weekend trading.

The price drop of around 300 pips on the XAU / USD chart yesterday touched the lows around 1895.00 but closed the New York session above 1900.00 again.

Investors are still waiting for the development of the United States (US) economic stimulus package in the hope that it will fade for agreement to be reached.

Slow price movements in the Asian session this morning focused on the Presidential debate between Donald Trump and Joe Biden in a more controlled atmosphere than in previous events.

The US dollar was then seen to depreciate in today's European market session and make room for gold prices to rise again. Investors are back confident that gold prices continue to rise high?

The price rise again towards the SBR zone (support become resistance) around 1910.00 but the movement that remains below the Moving Average 50 (MA50) barrier level over the 1 hour time frame still signals a downward trend on the XAU / USD chart.

As previously expected, the price increase is seen to test the resistance zone of 1930.00 which has been tested for 2 consecutive weeks but still failed to pass.

On the other hand if the price makes a decline below the 1900.00 level again, the support zone around 1875.00 will be the next target.

Follow the development of current market sentiment affecting US dollar trading as well as the movement of the value of gold in the market.